Summer 2020 Heavy Duty Industry Update

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Summer 2020 Heavy Duty Industry Update

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After 3 disappointing months, we can take a small sigh of relief in seeing the volume of North American Class 8 orders increase.  In June, the second highest numbers were reached this year.  No one can say if this is the beginning of a consistent trend or rebound, but for now it’s positive.  Preliminary net orders jumped just over 23% from 12,979 a year ago, to 16,000 this year, same timeframe. The market’s return will be a slow process as the impact of COVID-19 continues.  However, just remember back in April, orders plummeted to a low not seen since 1995:

  • Freightliner Class 8 retail sales for 2019 = 8,209; and for 2020 = 4,315
  • Kenworth Class 8 retail sales for 2019 = 3,755 while 2020 = 2,290
  • International Class 8 retail sales for 2019 = 3,537 while for 2020 = 1,961
  • Peterbilt Class 8 retail sales for 2019 = 3,842 vs 2020 = 1,553
  • Mack Class 8 retail sales for 2019 =1,924 vs 2020 = 1,063
  • Volvo Class 8 retail sales for 2019 =2,199 vs 2020 = 951
  • Western Star Class 8 retail sales for 2019 =558 vs 2020 = 504

Some notable points: 

  • Long-haul trips in April and May were noticeably down as container imports at ports became scarce; meanwhile local trips (less than 100 miles) increased by more than 100%
  • Almost 70% of specialty and tanker truck operations were disrupted 
  • When asked in a survey of the country’s economic status for the rest of 2020, most respondents perceptions were slightly pessimistic, citing freight movement and consumer spending to be lacking
  • The Commercial Vehicle Safety Alliance’s (CVSA) has announced that Brake Safety Week will proceed as scheduled, August 23-29
  • Driver Appreciation Week takes place Sept. 13-19, honoring commercial truck drivers for their hard work and commitment to the industry.
  • Improvements in housing and industrial production may help push a recovery for truck freight, however the spikes in COVID-19 throughout the country are cause for a lot of uncertainty

While some businesses have worked through the COVID-19 pandemic, some are just now entering phases that allow them to re-open.  We hope that the truck market can continue to work in a positive direction. 

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